City of Eugene Ballot Measure 20-134

DOWNTOWN URBAN RENEWAL PLAN AMENDMENT

Question: Shall urban renewal plan be amended to increase the spending limit
by $40 million and extend the plan's ending date?

SUMMARY: If approved by voters, this measure would make two major changes to the downtown urban renewal plan. First, the measure would increase the amount of urban renewal funds that can be spent on downtown projects by $40 million. The urban renewal plan limits the amount of urban renewal funds that can be spent, known as the maximum indebtedness amount. Under the current plan, approximately $4.5 million is left for downtown projects. These urban renewal funds- officially called tax increment funds - are the property taxes on the increase in assessed value of property in the urban renewal district that occurs after the plan's adoption. Tax increment financing does not impose new taxes, but instead reallocates the property taxes on the increase in assessed value from other taxing districts to the urban renewal agency. This reduces revenue to the other taxing districts. Second, the measure would extend the termination date for the downtown urban renewal plan from 2024 to 2030.
A yes vote approves the urban renewal plan amendments.

LWVLC BACKGROUND RESEARCH

The Eugene downtown urban renewal district was formed in 1969. Like other local governments in Oregon, Eugene uses tax increment financing to pay for public improvements in urban renewal districts. For example, the assessed property value in the district on which owners paid property taxes was $31.4 million in 1969. Today the assessed value is $152 million. The difference in assessed value between 1969 and 2007 -- $121 million -- generates property taxes and can be used to pay off loans related to public improvements within district boundaries. The tax revenue can be used only within the district on district-approved projects.

Such revenue cannot be shared with the city's general fund, the Eugene School District, Lane County, Lane Community College and other local governments that otherwise would share that property tax revenue if the urban renewal district did not exist. No district's property taxes would be increased as a result of this measure.

The recurring debate centers on whether downtown redevelopment should be accomplished with numerous small, incremental projects or with one major project that includes various smaller projects.

SUPPORTERS SAY:

. This proposal is a great opportunity to revitalize West Broadway with committed, long-term public/private partnership. This is the center of our city, and the increase in the available funds for long-term development downtown is a wise investment.

. A larger-scale comprehensive project will enhance the city's investment in the
downtown vision. The city has an obligation to assist with coordination of zoning,
services, and the financial package to ensure the successful completion of the
project.

. Developers with proven expertise will provide an attractive, safe, and functional downtown area which benefits not only Eugene but Lane County and beyond.

OPPONENTS SAY:

. The proposal will take too many dollars away from schools, Lane Community college and other local entities. The result will be higher taxes or cuts in services.

. Local businesses in the project area could be destroyed. Many replacement businesses may be large corporate chains, putting current local interests at risk.

. Major projects to revitalize downtown should be done incrementally with attention to additional public involvement, the protection of historic buildings, and the avoidance of duplication, such as parking structures.

SOURCES:

Interviews with Eugene City Council members Bonnie Bettman, Andrea Ortiz,
Chris Pryor and Betty Taylor; David Monk, Citizens for Public Accountability
Eugene Register-Guard
Eugene City Recorder
Lane County Elections


Research: Kappy Eaton and Pat Ross, Voter Service Committee, LWVLC